When offshoring boosts local jobs

Most studies on the effects of offshoring on domestic labour and productivity are skewed because they focus on larger firms, but the inclusion of SME's reveals a counterintuitive reality.

How offshoring affects the home economy, particularly home employment and inequality, has been a hot issue in policy circles in many developed countries. Theoretically, the employment and wage effects of offshoring can go either way, depending on how offshoring affects domestic productivity and technology.


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